In a surprising move, President Donald Trump granted pardons to three co-founders of the BitMEX cryptocurrency exchange, along with a former high-ranking employee. The pardons come months after the individuals were convicted for violations related to the Bank Secrecy Act, sparking widespread debate about the regulatory treatment of cryptocurrency exchanges.
The individuals granted pardons include Arthur Hayes, Benjamin Delo, and Samuel Reed, the former executives of BitMEX, as well as Gregory Dwyer, the company’s former head of business development. All four had pled guilty to failing to adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations.
At the heart of the case was BitMEX’s failure to implement necessary compliance measures, which prosecutors argued turned the platform into a “money laundering hub.” Despite the company’s claims of withdrawing from the U.S. market, authorities contended that this was a “sham” designed to avoid regulatory scrutiny while continuing to serve U.S. customers. 
Each of the BitMEX founders had been sentenced to probation and ordered to pay civil fines totaling $30 million. Dwyer, who was sentenced to 12 months of probation, was additionally required to pay a $150,000 fine. These actions followed a lawsuit by the Commodity Futures Trading Commission, which had taken issue with BitMEX’s disregard for U.S. financial regulations.
Trump’s pardons come after BitMEX was also fined $100 million for similar violations. The pardons were issued on Thursday, and both Hayes and Delo expressed gratitude for the decision. Hayes took to Twitter, thanking the President, while Delo labeled the Justice Department’s actions as “wrongful targeting” and emphasized the unjust nature of the charges, calling the BitMEX case a political tool.
Delo, who had served as the company’s COO and chief strategy officer, reflected on the impact of the case, claiming that BitMEX was used as a scapegoat to send mixed regulatory signals, and that the charges had been politically motivated. With the pardon in place, Delo expressed relief, stating that he could now focus on his philanthropic work without the burden of an unfounded conviction.
BitMEX was founded in 2014, and its founders had been aware of the legal requirements to prevent money laundering, particularly for U.S. clients. However, according to prosecutors, the company ignored these regulations and continued to allow U.S. customers to access the exchange, even after policies were put in place to block them.
Along with the BitMEX founders, another high-profile figure, Trevor Milton, the former CEO of Nikola, also received a pardon from Trump for his conviction on securities fraud charges. Milton had been sentenced to four years in prison but remained free while appealing his conviction.
This latest move by the former president has raised questions about the application of justice in the realm of cryptocurrency and corporate accountability. It remains to be seen how this will influence future regulatory actions in the crypto space.
